Pump.fun, once a beacon for traders in the meme token space, is experiencing a significant slowdown. The decline is due to waning trader interest and reduced Solana liquidity.
Fewer tokens are graduating to Raydium
Just a few weeks ago, Pump.fun was witnessing record daily token launches, but now only 68 tokens reach Raydium each day. The issue stems from traders' inability to gather the 85 SOL needed for new tokens without team support.
Impact of LIBRA and Other Tokens
The launch of the LIBRA token and issues with other assets like MELANIA shattered confidence in the meme token industry. These events exposed insider activities and led to a slowdown in the number of tokens migrating to DEX, as traders have grown weary of rug pulls.
Developers' Role in Token Creation
Data shows that a small group of developers is responsible for a significant portion of token creation on Pump.fun. Only 0.3% of creators have launched 20% of all assets, highlighting a shift away from broad participation toward actions dominated by a small group.
Pump.fun is navigating difficult times. With declining trader interest and the faltering appeal of meme tokens, the platform must find new ways to regain its former popularity.
